Friend had her 341 today....

[BillyRip]

Literally a walk through... Three kids, no job for almost a year, despite two BA's and 15 years experience in telecom and call centers.

Debt to income is about 1-600 right now, no exageration. $80K under water on a $350K house, etc... And a single mom with maybe $1000 a mo. child support.

At the 341, her Trustee ask to see her life insurance policy paperwork. Any ideas why?

[BillyRip]

Whoops! Obviously that 6-1 debt to income.

[justbroke]

They always ask for policies in case they are whole life and not term. Some insurance policies have a cash value. It didn't have anything to do with the income or debt ratios, in my opinion.

Panel Trustees are strange beasts. They are all different. They are all practicfing attorneys who are appointed by the Office of the United States Trustee (OUST) to oversee Chapter 7 cases. Each has their own style. In some Districts, they tend to come and go, and in others, they have certainly made a career out of being a Trustee and know where to find money.

[BillyRip]

Thanks JB! I'm sure if there is any cash value in it, it won't be enough to cover all of the debt. Especially with the three dependent kids and $80K on the house, which she is letting go.

She has like a 2005 Tahoe that will be paid of shortly. That's about her only real asset now.

[justbroke]

The Trustee doesn't care that it covers any amount of the debt. Only that there is a non-exempt asset from which they can distribute "something". Some Trustees won't care if it's only $100... they'll want it.

[wolverinegal]

Trustee asked me the same question. Wanted to know cash value of policy (under $100) and all he said was ok. We are awaiting discharge so it must not have mattered much.